Strategic Spending in Business Travel Amid Economic Uncertainty

As corporations navigate a landscape fraught with trade tensions and economic unpredictability, spending on business travel is evolving. Recent insights from the travel expense platform Navan and the Global Business Travel Association (GBTA) reveal that while corporate travel spending has risen, companies are adopting a more measured approach in allocation. Expenditures increased by 15% year-over-year in Q2 2025, according to Navan’s latest business travel index, which draws data from millions of transactions related to airlines, hotels, and corporate expenses.

Cautious Optimism and Necessary Travel

Amy Butte, CFO of Navan, indicates that despite the uncertainties, businesses aren’t retreating from travel. Instead, organizations are approaching travel with a “wait and see” mentality. “If you’re making choices about where you’re being cautious, we’re not seeing people be cautious in the area of relationship building,” Butte stated, emphasizing that travel remains integral to business strategies. Investment in individual meetings continues to grow, highlighting the importance of personal connections in corporate settings.

However, even with a predicted growth in global business travel expenditure to $1.57 trillion by 2025, the figure reflects a 6.6% growth—below the previously forecasted 10.4%. GBTA attributes this slowdown to ongoing trade issues and fluctuating economic conditions. Their sentiment polls show a stark decline in optimism among corporate leaders for the travel industry. The proportion reporting positive outlooks dropped from 67% in November 2024 to just 28% recently, underscoring a cautious approach moving forward.

Corporate travel, typically one of the first budget areas to be cut, has shown resilience. As noted by Delta Air Lines CEO Ed Bastian, the industry has remained relatively flat compared to the previous year, yet there is a gradual shift towards efficiency. Butte suggests companies are focusing on maximizing trip value, opting for face-to-face meetings rather than large group outings, a change reflected in a 9.8% increase in spending on personal meals.

Airfare Trends and Corporate Adjustments

Interestingly, the overall airfare has decreased by 3.5% from last year, providing a slight cushion for businesses managing travel budgets amidst inflationary pressures. This drop follows comments from GBTA CEO Suzanne Neufang, who pointed out that CFOs are not eliminating travel but are sourcing more efficient booking strategies. Techniques such as planning multicity trips or combining several meetings into one itinerary are becoming common as companies strive to justify every travel expense.

Airline executives have recently indicated a cautiously optimistic outlook, with many expecting a rebound in demand for corporate travel as clarity in the market improves. Bastian noted during Delta’s earnings call that corporate travel had stabilized, while recent earnings reports from United Airlines highlighted a double-digit surge in business demand, reflecting a broader recovery across various sectors.

This adaptive strategy underscores a fundamental transformation in how businesses view travel. The emphasis is now on ensuring that each trip serves a strategic purpose and delivers measurable returns. The days when corporate travel could be deemed excessive or without rationale appear to be over, as decision-makers continue to evaluate the value of every engagement in an increasingly volatile economic climate.